Rabobank Report: Agricultural Machinery Must Innovate In Order To Meet Increasing Food Demand

Companies in the agricultural machinery supply chain will need to change their business models to meet the growing global demand for food, according to a report from Rabobank. With global demand for food expected to increase by 70 percent by 2050, the role of the machinery manufacturer and equipment dealer is changing, and machinery is becoming an integral part of the all-encompassing solution to increase productivity.

20 Nov 2012 --- Diversity among farmers means there is no ‘one-size-fits-all’ solution, and no one business model for manufacturing and selling agricultural machinery. Increasing productivity is complicated by the diversity among farmers as the farming industry is in different stages of development in the different parts of the world. For example, Asia and Africa, with their small farm structure, are at a relatively early stage in adopting modern agricultural machinery. In comparison, mature markets, such as the US, Europe and Australia, are showing consolidation amongst farmers, resulting in growth in the large farm segment.